Nifty-Technical View(4-7-14)

Nifty closed at 7714.80 on 3-7-2014 

SUPPORT  :- 7700.05 / 7649.50 / 7629 / 7611.35 / 7593.35 / 7487.55 / 7481.30 / 7477/  7441.60 / 7409 / 7340 / 7263 / 7229/7200

RESISTANCE:  7754.65 / 7855 / 7990

Nifty did gave down closing as expected but the gap it made on 2-7-14 is still there and a matter of concern (gap area7649.50—7677.30) however if it does not fill the gap in another 2-3 days time then the gap will not be of much botheration because then it is expected to complete the up move first and will fill the gap in down journey . Nifty moved in the short range today and closed near the day’s low of 7706.80.Since it closed today below the previous day’s close ,it is in the process of making higher bottom on the line chart, if it closes above 7725.15 on 4-7-14 then the higher top & bottom will be established on the line chart, therefore  as of now the bench mark level for nifty is 7700.05 and then 7629 &7611.35(for the month of July-14) and the short term DMA which is placed at 7584 for 4-7-14 for  the long trades, if nifty starts trading below 7700.05 on 4-7-14 then get alerted and reduce long exposure and below 7629 & 7611.35 avoid long calls completely in nifty till it bounce back above this level again.

REMARK:-Long term trend is up and it is buy on dip market as of now, I would suggest that let the higher top and bottom be established on the line chart  till then make moderate long commitment only but avoid long trade on nifty if it starts trading below 7700.05.Trade  cautiously with an adequate stop loss. Kindly note that make your cost your stop loss in favorable trade and then trail it as the price moves up/down to gain maximum profit and avoid losses.

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